ihta84/s97.- Transfers within group, etc.

[1975 s.39(8B),
(8C); 1976
s.118(1(.]

97.-(1) Where a close company ("the transferor company") is a member, but not the principal [company ¹ ], of a group and-

(a) a disposal by the transferor company of any asset is a disposal to which [section 171(1) of the 1992 Act ² ] applies and is also a transfer of value, and

(b) the transfer of value has only a small effect on the value of the minority participators' rights and interests in that company compared with its effect on the value of the other participators' rights and interests in the company,

the rights and interests of the minority participators shall be left out of account in determining the respective rights and interests of the transferor company's participators for the purpose of apportioning the value transferred under section 94 above.

(2) For the purposes of subsection (1) above-

(a) [170 of the 1992 Act ³ ] (groups of companies; definitions) applies as for the purposes of sections [171 to 181 ⁴ ] of that Act ⁵ ], and

(b) a minority participator is a participator of the transferor company who is not, and is not a person connected with, a participator of the principal [company ⁶ ] of the group or of any of the principal [company's ⁶ ] participators;

and in this section "group" and "75 per cent. subsidiary" have the same meanings as in section 272 of the Taxes Act. ⁷

1 1989 s.138(6)(a), with effect from 14 March 1989. Originally "member".

2 Substituted by TGCA 1992, Sch.10, para.8. Originally "273(1) of the Taxes Act 1970",

3 Substituted by TGCA 1992, Sch.10, para.8. Originally "272 of the Taxes Act 1970"

4 Substituted by TGCA 1992, Sch.10, para.8. Originally "273 to 281 of the Taxes Act 1970".

5 1989 s.138(6)(b), with effect from 14 March 1989. Originally "the principal member of a group is the member of which all the other members are 75 per cent subsidiaries".

6 1989 s.138(6)(a), with effect from 14 March 1989. Originally "member" and "member's" respectively.

7 Repealed by 1989 s.138(6)(c) and Sch.17 Part V11, with effect from 14 March 1989.